Bitcoin News: California Legalises Digital Currency, While Australia Remains in Limbo
By Reissa Su | June 30, 2014 4:25 PM EST
The use of Bitcoin, Dogecoin and other digital currencies has been legalised in California after the governor, Jerry Brown, signed the bill on June 28. The move has been described as a reversal of an "outdated" prohibition of the use of alternative currencies.
A woman stands behind a digital Bitcoin wallet during the Inside Bitcoins: The Future of Virtual Currency Conference in New York April 8, 2014. REUTERS/Lucas Jackson
Known as AB129, the bill will ensure that various forms of alternative currencies such as Bitcoin, Dogecoin, coupons, points and other digital currencies are valid in buying goods and services in California.
The new law is a repeal of the current state law that only U.S. currency is allowed for commercial trade. Democratic Assemblyman of California Roger Dickinson said the new law is only a reflection of the growing popularity of Bitcoin and other alternative forms of currency.
In a statement, Dickinson, who is also the bill's author, said it would be "impractical" to ignore these digital currencies in an "era of evolving payment methods." He remarked the bill hopes to finetune current laws in response to the changing payment habits of Californians, especially in the mobile or digital field.
While Bitcoin and other digital currencies are welcomed in California, Australia has yet to lift its restrictions. The Australian Tax Office (ATO) has delayed its ruling on Bitcoin. The delay has left businesses accepting the digital currency "in limbo."
According to reports, the ATO has yet to decide whether or not to treat Bitcoin as a currency or property. The Bitcoin industry in Australia has been hoping for ATO to issue its taxation guidance before the end of the financial year.
The release of the tax guidance may not be happening anytime soon as the ATO has asked further advice from Solicitor-General Justin Gleeson. This would mean Australian companies accepting Bitcoin as payment will have to continue without knowing their tax liabilities. Reports said they may face large tax bills for all their digital currency transactions.
An ATO spokesman said the office has delayed its decision to make sure the ruling was according to Australian law.
ABC has revealed previously that ATO has kept a close watch on digital currency news and activities in Australia and around the world. Documents from the Freedom of Informationa (FOI) showed the tax office was becoming more concerned about people using Bitcoin to avoid paying tax.
To contact the editor, e-mail:
Most Popular Slideshows
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Top 5 Richest Tennis Athletes
Join the Conversation
- Centerplate CEO Des Hague Caught Abusing Dog In Vancouver Building Elevator [VIDEO]
- The Most Insane Facts About The American Civil War That You May Not Know
- Viral Video Kevin Droniak Grandma: Teenager Shows Grandma Their Videos Together, Grandma Gives Priceless Reaction
- Major Highlights On 1400 Minor’s Sex Assault
- ISIS Video of Slain Syrian Soldiers Raises Doubts; Syrian Gov't Demands Release of Captured Troops
- Apple iWatch is iPhone 6 Accessory on Sept 19 Release Date: 6 Confirmed Specs & Features
- iPhone 6 Release Date Update: 4.7-Inch Model Scores 65.8% In Screen-To-Size Ratio; A Surprise Entry Scales Top Spot [List Attached]
- Canada Vs Russia War Erupts Via Twitter on Russia-Not Russia Maps
- James Foley Torture Involves CIA Waterboarding Technique
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Ukraine Ceasefire Looks Remote As Putin Talks Tough At Meeting With Poroshenko